Transitional arrangements for PAYE modernisation

How to align payments in advance of 1 January 2019

In order to align your payments in advance of 1 January 2019, we recommend the following:

  • Wages paid in week 52 of 2018 but calculated using week 51 credits, should now be correctly recorded as week 52 wages. You should allocate the additional weeks credits and rate band against the wages paid in week 52. This will result in a reduced amount of tax being deducted in week 52.
  • You should only include wages paid in December in your December 2018 P30
  • You should not include any wages paid in January 2019 in your 2018 P35. This applies even if your employee carried out the work in December 2018
  • You should calculate wages paid in week 1 2019 using the credits and rate band included on the RPN for week 1 2019. This applies even if the work carried out in 2018. You should report this payment to Revenue on or before the payment date. The payment will be included in the January 2019 monthly statement.
  • Where an additional week's LPT is due to be deducted for 2018, the employer should deduct the additional amount due in the final payment in 2018. Any employees affected should be advised by their employer in advance. 

Next: P35 and P60 2018